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1 de may. de 2016 · short run：短期（指只有一个变量（往往是劳动），而其他变量假设不变时（如资本））. shut down：停止营业（指单位变动成本与价格相等的点）. long run 中的exit：指退出（即某个厂商退出该行业）. 1. 评论.
If a business is making losses in the short run, it will either keep limping along or just shut down, depending on whether its revenues are covering its variable costs. But in the long run, firms that are facing losses will downsize, reducing their capital stock, in hopes that smaller factories and less equipment will allow them to eliminate losses.
3 de jul. de 2018 · Perfect competition. Shut down price. Profit. A business needs to make at least normal profit in the long run to justify remaining in an industry but in the short run a firm will produce as long as price per unit > or equal to average variable cost (AR = AVC). This is called the shutdown price in a competitive market.
20 de sept. de 2018 · The long run is a period of time in which the quantities of all inputs can be varied. "There is no fixed time that can be marked on the calendar to separate the short run from the long run. The short run and long run distinction varies from one industry to another." In short, the long run and the short run in microeconomics are entirely ...
22 de dic. de 2022 · This is part of why the shut-down rule exists. Long-Run Decisions to Enter or Exit the Market. When a firm is earning either a profit or a loss in the short run, it serves as a guide for other firms to either enter or exit the market.
Equating this to zero to find the minimum gives Q = 2.5, at which level of output average variable cost is 53.75. Thus if the market price of the product drops below 53.75, the firm will choose to shut down production. The long run shutdown point for a competitive firm is the output level at the minimum of the average total cost curve.
Resources. Shutdown Rule - The shutdown rule states that a firm should shut down production in the short run if its total revenue is less than its variable costs. In other words, it is more cost-effective for the firm to stop producing rather than continue operating at a loss.
